It is widely accepted that good physical infrastructure not only helps draw investment into a country and promotes economic growth, but also enhances the “quality of life”.  Clear and effective infrastructure policies are critically important to the implementation of a nation’s wealth-creating strategy.  Infrastructure has become a national competitive tool, an essential dimension in national economic and social development.

The business of infrastructure has changed dramatically over the past years.  Previously the management by civil servants of public utilities generated little excitement.  This changed in the 80’s with the advent of privatisation and in the early 90’s, as the globalisation of infrastructure industries became one of the most significant parts of international business.  However, limited public sector resources and continued disappointment with the result of traditional public sector provision have led countries, in both the developed and developing world, to re-examine the role of government in the provision of infrastructure.  Can they afford to satisfy the infrastructure needs of their people?  Should they manage essential services, and, if so, on what basis, or should these services be privatised?  How should new infrastructure projects be funded and are the financial, legal, project management, craft and technical skills available in the labour force?  How can civil services be reformed to regulate appropriately and provide an efficient environment for infrastructure development?

In many parts of the world, the need for infrastructure capital has been so great that governments have had little choice but to withdraw from the immediate ownership of major infrastructure projects and focus their role on economic regulation of public amenities and utilities.  Many governments are finding it increasingly difficult to invest in infrastructure and maintain an appropriate balance between revenue and expenditure to fund other essential services, as the expectations of their people increase.